Tamil Nadu governor RN Ravi has approved an ordinance to ban online rummy and poker games in the state, dealing a big blow to the nascent but fast-growing sector.
This move comes a week after the Tamil Nadu cabinet, led by Chief Minister MK Stalin, had passed an ordinance to ban these games in the state, terming them as “online games of chance”. The ordinance doesn’t specifically mention other game formats and applies only to games where the transfer of money is involved.
The move comes as the Supreme Court starts hearing a petition by the Tamil Nadu government challenging a Madras High Court decision that overturned the previous AIADMK-led government’s November 2020 ban on online games involving the transfer of money. In an order issued on August 3, 2021, the state high court declared it unconstitutional.
On September 9, the Supreme Court issued notice to all of the petition’s respondents, including skill-based gaming companies Junglee Games, Play Games24x7, Head Digital Works, and industry body All India Gaming Federation, giving them four weeks to file their responses, with the case expected to be listed in 10 weeks. Since then, the Supreme Court has added a similar petition by the Karnataka government to the matter.
Skill-based real money gaming, which accounts for a significant portion of the Indian gaming industry’s revenue, has been banned or attempted to be banned by several state governments, including Tamil Nadu, Andhra Pradesh, Telangana, Kerala, and Karnataka because gambling is a state subject.
According to industry executives, South India is a particularly important market for skill-based games such as Rummy, which has a significant penetration in these states.
Click here to view original web page at www.moneycontrol.com
